Australia’s government has released draft legislation to introduce new tax reporting requirements for crypto asset transactions, seeking to improve transparency and strengthen the exchange of tax information involving digital assets.
The proposed measures would incorporate the Organisation for Economic Cooperation and Development’s (OECD) Crypto-Asset Reporting Framework into Australian law and establish a domestic reporting regime covering transactions involving Australian residents.
The draft legislation would also update the country’s existing Common Reporting Standard (CRS) for the automatic exchange of financial account information.
The consultation follows an earlier government process on the Crypto-Asset Reporting Framework and related amendments. The measures were announced in the 2025-26 Mid-Year Economic and Fiscal Outlook.
Under the proposed domestic regime, providers of registrable virtual asset services would be required to report transactions involving the exchange or transfer of virtual assets for Australian residents, including transactions carried out on their instructions.
The draft legislation proposes applying the domestic reporting requirements to transactions occurring in financial years beginning on or after July 1, 2027, or in another reporting period specified by the Commissioner of Taxation that begins on or after that date.
The proposed legislation would also establish a framework allowing Australia to implement international tax information-sharing arrangements developed by international organisations or agreed between jurisdictions.
Under the framework, regulations could prescribe qualifying international cooperation arrangements, while the minister would be empowered to make rules governing their implementation.
These rules could specify which entities must report information, the transactions covered, reporting periods, due diligence obligations, and administrative penalties for non-compliance.
The draft also proposes changes to the Common Reporting Standard, including expanded due diligence requirements for financial institutions.
These would cover obtaining and validating account holders’ self-certifications and taking action when changes in circumstances make previously supplied information incorrect or unreliable.
The revised CRS provisions would incorporate amendments published by the OECD in 2023 alongside its Crypto-Asset Reporting Framework.
The draft legislation identifies Jan. 1, 2027, as the effective date for the revised CRS, with the relevant amendments applying to the 2027 calendar year and subsequent years.
The proposed changes would also provide for administrative penalties for certain reporting failures under rules implementing international cooperation frameworks, while preventing duplicate penalties for the same failure where another provision of tax law already imposes a penalty.
The legislation remains at the consultation stage, with the government seeking feedback on the draft measures and explanatory memorandum before proceeding with the proposed changes.
